IMAGE RESOURCES NL — Capital/Financing Update 2006

Oct 19, 2006

IMAGE RESOURCES NL

ASX Release 20 October 2006 ASX code: IMA

2^nd Floor, 35 Outram St West Perth WA 6005 PO Box 644 West Perth WA 6872 Telephone 08 9485 2410 Facsimile 08 9485 2840 info@imageres.com.au www.imageres.com.au

ABN 57 063 977 579

MAJORITY EQUITY POSITION CONFIRMED AT COOLJARLOO

Following its aggressive and successful exploration programme at Cooljarloo in the North Perth Basin, Image has earned a 51% interest in the Cooliarloo Joint Venture and confirmed its election to proceed to earn a 70% interest in this 75sg km project.

Under the terms of its joint venture with Metal Sands Pty Ltd, Image has earned a 51% interest by expenditure of \$500,000 and may increase this to a 70% interest by expenditure of a further \$300,000 within five years.

As recently announced (ASX releases of 28 September 2006 and 12 October 2006). Image has had considerable success with its mineral sand exploration at Cooliarloo having confirmed extensive shallow, high-grade heavy minerals at the 35 AHD and 28000 strands and identifying several, thick, well mineralised channelstyle deposits with large tonnage potential. The channel deposits have so far been traced over an aggregate strike length of more than 7km.

Drilling is continuing on several channel-style targets identified from geophysical surveys with results from the current drilling programme expected to be released over the next two to six weeks.

For more information on the company visit www.imageres.com.au

Please direct enquiries to: Roger Thomson Managing Director Phone (08) 9485 2410 Mob 0419 969 183

George Sakalidis Executive Director - Exploration Phone (08) 9485 2410 Mob 0411 640 337

The information in this report that relates to exploration results is based on information compiled by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is an employee of Image Resources NL. Roger Thomson has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.